SIDBI partners with RRBs to expand MSME loans in rural India: CMD Manoj Mittal

The Small Industries Development Bank of India (SIDBI) is developing a co‑lending framework with Regional Rural Banks (RRBs) to broaden affordable MSME financing in rural India, announced SIDBI Chairman and Managing Director Manoj Mittal at the bank’s 37th Foundation Day ceremony.

Speaking at the event, Mittal explained that the plan originated after Finance Minister Nirmala Sitharaman issued guidance during a review meeting of RRBs.

“SIDBI was instructed to devise a risk‑sharing arrangement with the RRBs. The undertaking involved persuading RRBs, securing regulatory clearances, formulating loan policies for each RRB, and deploying an easy‑to‑use technology platform,” Mittal stated.

He noted that SIDBI has already run a pilot with select branches of three RRBs, and the early feedback has been positive.

“We carried out a pilot in a handful of branches from three RRBs, and the outcomes are promising. With 23 RRB branches, we aim to scale affordable MSME credit to every part of Bharat,” he added.

Mittal highlighted that the initiative merges SIDBI’s MSME financing know‑how and digital strengths with the extensive rural footprint of RRBs to improve last‑mile credit delivery in rural and semi‑urban regions.

Regarding SIDBI’s growth, Mittal said the bank has markedly expanded its branch network after governmental encouragement to deepen its presence in MSME hubs.

“I’m pleased to share that we now operate 166 branches as of March 2026, up from 96 in March 2024,” he said.

According to Mittal, SIDBI currently serves about 196 MSME clusters, and the enlarged branch network has contributed roughly ₹4,000 crore in additional direct finance.

“These branches have generated about ₹4,000 crores of extra direct finance business. Several of them have reached breakeven in under a year,” he remarked.

Mittal also revealed that SIDBI intends to grow its collaborations with industry associations from the present 105 to 500 within the next two years, as part of its developmental agenda for the MSME sector.

Published on May 25, 2026